Amanda Chesser

Comm483
Nov. 10, 2015
Toyota Prius:
Rejuvenating the American Dream: Driving A New Age

Situation Analysis
As concerns over the environment heighten, consumers are
buying more environmentally friendly cars, like hybrids and electric
plug-ins, which use less fuel and emit lower emissions (Ayre, 2015).
The Toyota Prius is a leading hybrid in environmental technology that is
facing heightened competition in an increasingly crowded
marketplace for fuel-efficient cars, and as a result has struggled to
maintain sales. As of July 2015, Toyotas Prius sales were down 15.4
percent for the year.
The Priuss position as a leading hybrid is threatened by
competitors fuel-efficient sister models, which take away sales,
and by evolving consumer preferences. According to a study
published in April noting a spike of SUV and truck sales, 22 percent of
consumers swapped in their fuel-efficient wheels for an SUV (Forbes,
2015).
Prius sales are also susceptible to changes from gas price
fluctuations. This year, gas prices sank to their lowest levels in 11
years (Forbes, 2015). When gas prices are cheap, consumers may
turn to conventionally fueled cars, which sport a more favorable
price tag than eco-tech friendly hybrid models.
The U.S. automobile industrys evolving consumer base will also
impact future Prius sales. The growing U.S. Hispanic population is
driving car sales and flexing increased purchasing power. In 2014,
Hispanics accounted for 35 percent of Toyotas year-over-year sales
growth (Polk, 2014). Toyotas ability to appeal to this key demographic

is critical to drive sales and secure the Priuss future in the growing
hybrid automobile market.

SWOT Analysis
Strengths
Toyotas debut of its fourth-generation Prius hatchback will be
the first redesign release of the Prius in almost seven years.
This may spur excitement and interest among loyal Toyota
drivers, dealers and potential buyers.
With global cumulative sales that account for 68 percent of the
7.8 million hybrids sold worldwide, the Prius tops the hybrid
market.
o As the first hybrid model on the market, the Prius also has
historical credibility in the industry, and a strong fan
base.
The fourth generation Priuss new and improved features are
selling points to drive sales:
o 10 percent mpg improvement in fuel efficiency
o 40 percent improvement in Prius engine efficiency,
including reduced friction and improved combustion
o 10 percent smaller batteries with 28 percent better
performance
o More luggage space
o New technology: four-wheel drive, improved passenger
protection and safety technology such as traffic light
connection.
o New sport and luxury design enhancements: The new
Prius is longer, wider, lower and roomier. It has a new
double-wishbone suspension and a lavishly equipped
interior.
Toyotas dealership incentives to clear the existing models for
the new models could inspire increased sales of older Prius
models.
In 2014, Toyota topped the Hispanic market with a 16.9
percent share. Toyota is also the top-selling brand for
Hispanics for over 10 years (Bishop, 2014).
Toyota has a preexisting department, the Hispanic Business
Strategy Group of Toyota North America, with staff who
specializes in promoting Toyotas among Latinos.

Toyota
has
previous

recognition among Hispanics:

o In April of 2015, Toyota made Latino Magazines Latino 100
list for the third year being in the top 100 companies
providing opportunities for Latinos (Toyota, 2015).
o Toyota was consecutively the official automotive and
transportation sponsor for the annual conference for
Latino media influencers, Hispanicize in 2015 and 2014
(Hispanicize, 2015).
Weaknesses
The Prius hybrid model is traditionally more expensive than
conventionally fueled vehicles.
New technologies of the new Prius risk unpredicted defects;
such as those that resulted in the recalls leading to the Toyota
factory freeze of 2009-2010.
Opportunities
There is an increased international concern over the
environment, which may turn more consumers to the hybrid
market.
o Toyota can use this as an opportunity to elevate Toyotas
brand as a leader in automotive sustainability
initiatives and technology.
Automaker experts predict the decline of conventionally
fueled vehicles, and expect sales of diesel and gasoline engine
cars to near zero by 2050 (Kubota, 2015).
o Toyota can market the Prius as the affordable transition
model to the future no-fuel-emission automotive industry.

The Priuss environmental capabilities align with Toyotas wider

green car strategy, which aims to cut carbon-dioxide
emissions by more than 22 percent by 2020.
Existing government subsidies or incentives for hybrid
purchasers may favorably impact Prius sales.
Volkswagens recent downfall has dulled a fierce competitor,
and created an opportunity for Toyota to gain and/or convert
customers who were Volkswagen loyal.
Toyota topped the consumer-reported 2015 reliability study
(Mays, 2015).
Latinos are reportedly 15 percent more likely to buy a
Japanese auto brand than any other group.
Many Hispanic generations are undergoing upward socioeconomic mobility, including purchasing a car for the first
time. First-time car buyers are unlikely to have a preexisting
brand loyalty.
o Hispanic culture has high group identification and
loyalty, which could benefit customer retention and
referrals.
There is an opportunity to target Hispanics in the country of
origin, establish awareness and build a positive reputation for
the Prius before Hispanics move to the United States.
Hispanics outpace the general U.S. population when it comes to
technology: They are early adopters of new technologies and
more likely to use mobile technology, social media, applications,
and other digital tools for shopping (Acosta, 2015).

Threats
The expanding hybrid market could take away from Toyota
Prius sales.
o Competitor models include: Tesla, Nissan Leaf, Chevrolet
Volt, Audi Etron, and the Ford C-max.
o Jeep has the fastest growing percent of Hispanic market
share (Chappell, 2015).
Evolving consumer preferences for SUV or trucks.
Declining gas prices.
Barrier of moving prospects from the conventional gas
market to the hybrid market for the first time.
Unfavorable infrastructural availability of charging stations
for Toyota Prius.
Lack of one uniform Hispanic identity, as well as different
preferences (Hispanic v. Latino) or cultural identification factors,
such as region of origin.

Lack of intercultural awareness of the Hispanic culture

among Prius retailers and local dealerships, including
communication preferences, language preferences and family
structure.
Hispanic group-decision making style incorporating
extended family members within the Hispanic culture may
complicate the selling process.
Barriers associated with marketing to Hispanics, including
language, availability of cable TV, and improper English-Spanish
translations.
Residency complications associated with car ownership:
o Barriers to gaining a drivers license
o Barriers to getting a loan

Secondary Research:
Secondary Research focused on the features of the Toyota Prius and its
traditional consumers.
Hispanic Population:
o By 2060, the US Hispanic population is estimated to reach
128.8 million, constituting approximately 31 percent of
the population.
o Hispanics are younger than most other racial/ethnic
groups, with the median age being 29 years.
o As of 2012, the median income for Hispanics was
$39,005
o Hispanics are extremely family oriented, and place larger
emphasis on the extended family, while the AngloAmerican family places more emphasis on the nuclear
family. Shopping is often considered a social activity, and
Hispanics are less likely to shop alone.
o 60 percent of Spanish-speaking US Hispanic consumers
agree that there is a lack of Spanish digital content.
o Hispanic culture emphasizes traditional gender roles,
and Hispanic moms are usually the decision makers.
o Hispanics aspirations are dominated by the desire for high
educational attainment.
o Hispanics are 30 percent more likely to purchase a
product advertised on a social site, and to use
technology to make purchases.
Primary Research:
Additional primary research to supplement existing information
may include:

A competitive analysis of rival models, analyzed across

the following dimensions: safety, price, performance, style,
marketing tactics and technology.
o A formal survey could be administered among a sample
that is representative of the US Hispanic population to
measure their current perception of the Toyota brand, the
Prius model, and to highlight the priority considerations
when they purchase a car. This would use close-ended
questions, and would deliver quantitative
generalizable results.
This would help identify motivational variables which
may move Hispanic consumers along from
awareness to action- that is, to buy a Prius.
o A qualitative focus group among Prius dealers and
salesmen may also help inform the campaign by
highlighting barriers or factors that prevent Hispanics from
purchasing the Prius model, or additional values that this
demographic looks for when purchasing a car, as well as
factors that influence a general prospects decision to buy
any hybrid car.
o

Key Publics:
Primary:
o Hispanic Americans
Heads of household: Hispanic mothers, ages 30-60
First time car buyers
o All potential car buyers
Current hybrid owners, especially those who own a
Prius
Potential hybrid owners
Environmental-savvy car prospects
o Retailers/Dealers
Sales managers and line salesmen
o Media
Automobile influencers: trade media, bloggers,
review companies
Hispanic influencers: journalists, reporters, bloggers,
publications produced in Spanish etc.
Environmental influencers: trade outlets, bloggers
and influencers
Family magazines
Messages:

American consumers, their values and their idea of the

American Dream is progressively evolving.
The Toyota Prius is at the forefront driving the future of Americas
automobile industry and environmental technology.
With the Toyota Prius, you can have it all: style, efficiency, and an
environmental conscience.
Purchasing the Toyota Prius helps keep the future of America and
the environment bright for future generations.

Big Idea:
There is a new changing American Dream. The people
envisioning it are also changing, and they choose to drive Prius.
Owning a car, a house, and receiving an education are all
aspects usually associated with The American Dream.
Planning:
Goal: For the Toyota Prius to be the preferred hybrid model
among Hispanic American consumers.
o Objective: Improve brand awareness among Hispanic
Americans (as measured by a post-campaign survey
evaluation) of the Toyota Prius as an affordable, family- and
eco- friendly vehicle by the end of implementation.
Strategy: Utilize traditional media relations to target
media placements in international Hispanic media,
national media, local media (especially in cities with
high Hispanic populations), and bilingual
publications.
Press Releases
Media Kits
Pitches
Deliverables
Strategy: Put a face on the Toyota Prius by partnering
it with a prominent recognizable Hispanic
spokesperson
Recruit Sofia Vergara as a brand ambassador.
Undergo reverse placement in popular TV show
Modern Family.
Use reverse placement in ads for mobile
devices
Strategy: Partner the Toyota Prius with a popular
mobile provider or producer, such as Verizon.
Use reverse placement for the Prius in Spanish
marketing campaigns for mobile devices,
tablets, computers etc.

Creation of a chance to win a Prius or

chance to win an electronic device with the
purchase of either.
Strategy: Engage Hispanic Americans with the Toyota
Prius brand online with integrated new media
approaches.
Creation of Prius blog, twitter and SnapChat
account.
Creation of an online campaign with the
integrated hashtag #DrivingDreams, where
Prius owners share an accomplishment that
happened with their car (Ex. Road trip, first
kiss, first day at school, move into college etc.)
Get spokespeople to tweet about the Prius and
the campaign from their personal accounts
Integrate social campaigns into ads and
deliverables
o Ensure all social content is mobile
compatible
Strategy: Ally with organizations specific to Hispanic
Americans
Sponsor Hispanic American influencer
conventions
Align with Hispanic American activist groups,
civic groups and non-profits, and include them
in community events.

o Objective: Increase sales of the Prius among Hispanic

Americans by 25 percent in at least seven key markets
during 2016. (Output objective)
Strategy: Provide support for dealers to help close
sales with Hispanic prospects efficiently.
Host educational events on communicating
with prospects of the Hispanic culture.
Create internal deliverables and distribute to
dealers in print, and display in high traffic
employee areas.
Establish local friendly competitions between
dealerships.
Create a reward program for successful crosscultural sales.
Establish a national Toyota assistance
hotline/mentor to help prospects struggling
with residency complications.

Create a marketing campaign that is culturally

relevant to Hispanic Americans
Incorporate elements of Spanish in marketing
materials.
Include actors or actresses and voices in
marketing materials of different ethnicities,
such as Hispanic.
Reverse placement in popular Spanishlanguage television shows
Create online elements to facilitate online purchases
among Hispanics
Creation of a customization app and purchase
website for Prius to facilitate online
transactions
Make each online website, blog, and social
media account available in Spanish and English
Incline a group design feature, so that
multiple members can vote on key design
elements
Advertise in print, online and on social the
ability to purchase Prius online
Host events in seven key Hispanic cities
Music events at community colleges/public
institutions, featuring Hispanic artists, such as
Pitbull or Enrique Iglesias, sponsored by the
Toyota Prius.
Hyper-local Prius retailer premiere gatherings
within Hispanic communities, and raffle off

Goal: For the Toyota Prius to be the premiere choice for potential
hybrid buyers.
o Objective: Increase awareness among consumers of the
Prius as the face of hybrid cars by 30 percent.
Position the Toyota brand as the industry leader of
environmental technology.
Ally with environmental activist organizations
Secure placement in environmental academic
publications, produced by environmental
research groups, NGOs, non-profits,
professional coalitions.
Create and head an environmental coalition
among auto providers, including companies
who make tires, electricity, music, etc.

Creation of an environmental pledge signed by

prominent spokespeople and/or organizations.
This can be displayed in Prius retailers.
Partner with Uber and/or Lyft to provide Prius
cars to Uber drivers and create an
environment car option on the Uber app,
with the ability to share your eco-friendly
choice on Facebook.
Highlight the environmental benefits of the Prius
Media placement in environmental academic
publications.
Sponsor national environmental initiatives,
such as project clean stream.

Evaluation
The evaluation of this campaign can be measured by:
o Sales growth in the Toyota Prius
o Performance percentage measurement of sales efficiency
for dealers engaging Hispanics
o Sales growth retention one year after implementation
o Number of Hispanic referrals
o Number of media placements, including the favorability of
coverage
o Social media engagement, including favorites, likes,
retweets and hashtags.

Sources
Ayre, J. (2015, March 28). Electric Car Demand Growing, Global Market
Hits 740,000 Units. Retrieved November 9, 2015, from
Breyer, M. (2012, August 8). Toyota Prius: Latest status symbol for the
wealthy? Retrieved November 9, 2015
Chappell, L. (2015, May 18). Sales to Hispanics outpacing the market.
Retrieved November 11, 2015
Hispanic or Latino Populations. (2015, May 5). Retrieved November 10,
2015.
Kubota, Y. (2014, October 14). Toyota Maps Out Decline of
Conventionally Fueled Cars. Retrieved November 11, 2015
Toyota Named to LATINO Magazine's LATINO 100 List for Third
Consecutive Year. (2015, April 29). Retrieved November 11, 2015
Toyota and Scion 'Presente' at Hispanicize 2015. (n.d.). Retrieved
November 11, 2015